The reason for the rush is clear - it wants to complete the disinvestment process in the oil sector PSUs by the end of the fiscal year, which ends in March 2004.
Should it get its wish, India could see foreign companies holding stakes in IBP Ltd, Gail India, Oil and Natural Gas Corp (ONGC) and Indian Petrochemicals Corp Ltd (IPCL). The disinvestment is expected to bring in revenue to India's coffers to the tune of US$2.2 billion.
The matter is apparently of the utmost urgency as rumours have been leaked that India's Finance Minister, Jaswant Singh, has applied pressure of the FIPB chairman - Finance Secretary D.C. Gupta - to approve the proposals. Under current law, FIPB permission is required before a non-resident investor can participate in the public offers of the four companies in question.
The Indian government is looking to sell off around 26% in IBP, 28.9% in IPCL and 10% each on ONGC and Gail.
